EOR - Made in Germany

Employer of Record (EOR)

Hire employees in Germany compliantly – onboarding within 24 hours. As your Employer of Record with a legal entity in Germany, we take care of employment contracts, payroll, and all labor-law related matters — supported by in-house labor law expertise and a dedicated personal contact.

✔︎ Based in Berlin, Germany

✔︎ In-house labor law expertise

✔︎ Licensed by the Federal Employment Agency (AÜG)

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Awarded EcoVadis Gold – Top 5 % of companies assessed worldwide

What we handle as your Employer of Record in Germany

Employing in Germany means navigating strict labor laws, complex payroll rules, and close coordination with public authorities. As your Employer of Record, we ensure full end-to-end compliance – so you don’t have to. All services are delivered by our in-house teams in Germany — with clear ownership and a dedicated point of contact.

LEGAL

Employment & Compliance

Your dedicated employer partner in Germany.
We act as your Employer of Record and personally guide you through German labor law, AÜG requirements, and all authority interactions — ensuring full compliance at every step — with direct access to a dedicated labor law expert.

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FINANCE

Payroll & Statutory Contributions

Payroll managed personally, not just processed.
We manage monthly payroll processing, salary payments, tax filings, and social security contributions — proactively monitored, clearly explained, and always compliant.

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ADMIN

Contracts & Documentation

Hands-on HR support from day one.
We prepare and manage employment contracts, amendments, onboarding documentation, and ongoing HR administration — with a named, dedicated contact who knows your setup and your team.

Why Germany is Especially Complex

Germany has one of the most regulated labor markets in Europe. Strict employment protection, mandatory social security systems, and complex termination rules make compliant hiring challenging without a local legal setup.

PROTECTION

Strong Employee Protection

Hiring in Germany means navigating one of the most protective labor systems in the world — mistakes are costly.

COMPLIANCE

Complex Employment Contracts

German employment contracts follow strict legal rules, with collective agreements partially applying and adding further complexity.

REGULATIONS

Employer of Record = AÜ

In Germany, the Employer of Record model is legally classified as employee leasing (AÜ) and requires an official license.

LEGAL

Strict Enforcement of the AÜ Act

The German AÜ Act is actively enforced, with audits, fines, and significant compliance risks.

VIEW AÜ LICENSE —

Why companies use an Employer of Record in Germany

German labor law requires a local employer with full legal responsibility. An Employer of Record provides this structure without the need to set up and operate a local entity.

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→ Local employer required by law

Employees in Germany must be employed by a locally established legal entity that assumes full employer responsibility.

→ High complexity and compliance exposure

German employment law, payroll, and social security rules create significant legal and operational exposure for foreign companies.

→ Entity setup is slow and inflexible

Establishing a German entity involves time, cost, and ongoing administrative obligations – even for a small number of hires.

→ EOR provides a compliant alternative

An Employer of Record offers a legally sound employment setup with clear responsibility and immediate operability.

→ Flexibility without long-term commitment

Companies can hire, scale, or exit the German market without fixed structures or permanent establishment risk.

How employer responsibility is structured under the EOR model

Client Company Responsibilities

→ Day-to-day management of the employee
→ Task assignment and prioritisation
→ Performance management and team leadership
→ Business decisions and objectives

✔︎ You manage how the work is done and what the employee works on.

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EoR Responsibilities

→ Employment contracts under German law
→ Payroll, salary payments, taxes, and social security
→ Statutory benefits and mandatory insurances
→ Compliance, employment changes, and terminations

✔︎ We assume full legal employer responsibility for the employment.

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AUG Licenced

We act as the legal employer, while you retain full operational control over your employees work. All employments are in accordance with the employee leasing model (AÜG) applicable in Germany.

✔︎ We hold the required AUG-Licence from the German Federal Employment Agency.

Discuss your EoR setup in Germany

More Information about the EoR Model

PRICING

What does it really cost to hire in Germany?

Calculate total employer costs with our employment cost calculator.

Monthly Gross Salary

€

Total Employment Costs (ER)

0,00 €

EOR Fee (BEST Plan)

499,00 €*

Employer cost structure in Germany

In Germany, total employment costs consist of gross salary plus mandatory employer contributions to social security and statutory insurance schemes. These contributions are regulated by law and apply to all employees.

Based on a Gross Salary = 100%

Pension insurance (9.3 %) – statutory retirement fund
Health insurance (8.9 %) – statutory health insurance
Long-term care insurance (1.8 %) – nursing and care contribution
Unemployment insurance (1.3 %) – unemployment protection
U1 (2.5 %) – reimbursement (partial) for longtime sickness
U2 (0.34 %) – reimbursement for maternity and parental leave
U3 (0.15 %) – insolvency levy

Employers in Germany typically pay around 24% on top of gross salary in mandatory statutory contributions. These contributions fund the German social security system and provide strong social protection for employees, but they also make payroll and employment administration more complex.
As your Employer of Record, we handle payroll, statutory benefits, and compliance, giving you full clarity on what employing in Germany actually costs.

worknow fees

Our Employer of Record service provides full employment, payroll, and compliance coverage in Germany.
We handle all statutory obligations — from contracts and payslips to social security, benefits, and tax filings — so you can focus on your business.
Our EOR Service Fee is standard at 599 Euro plus 199 Euro for On- and 199 Euro for Offboarding.
We provide a clear, all-inclusive monthly fee that covers everything required for compliant employment in Germany.

The monthly service fee covers all employment administration, payroll, statutory filings, benefits coordination, and local compliance.
Fees only apply while the employee is actively employed under worknow’s EOR arrangement.
Payments for gross salaries and employment costs are due by the 15th of each month, with salary disbursement on the third-last German banking day.
A deposit equal to 1.5 month’s gross salary + employer contributions per employee is required before onboarding and will be offset against the final payroll upon termination.

Get in touch for a transparent quote based on your specific needs.

Paid time off and holidays in Germany

worknow ensures fair, transparent and fully compliant employment conditions in Germany, based on applicable German labor law and statutory requirements.

Employees benefit from strong employment protections, clearly regulated working conditions and paid leave.

Annual vacation is defined in line with German law and is commonly extended contractually depending on the role, seniority and overall employment setup.

Germany observes 9 to 13 public holidays, depending on the federal state in which the employee is based. For example, Bavaria and Baden-Württemberg have more public holidays than Berlin or Hamburg.

In case of illness, employees in Germany continue to receive their full salary for up to six weeks, as required by German law.
Statutory reimbursement mechanisms apply, ensuring predictable employer costs.

Overall, German labor law provides a high level of employee protection. worknow ensures that all employment conditions are implemented correctly and in full compliance from day one.

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We are your boots on the ground, your local HR department, and your strategic partner for success in the German market.

An Employer of Record (EOR) is the smart solution for hiring in Germany without establishing a legal entity. But not all EORs are created equal. While global platforms offer a one-size-fits-all solution, they often lack the deep local expertise required for true peace of mind. Worknow is different. We are a German company, based in Berlin, offering a personalized, expert-led EOR service.

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One Dedicated Contact

Both companies and employees are assigned a named, long-term contact person. No ticketing systems, no handovers - all personal.

Guided Onboarding

Hands-on onboarding for both employer and employee, from contract signing to first payroll - we will guide you throug the process.

Custom Contract Drafting

Employment contracts are tailored to German labor law and your specific setup individually – no generic templates or self service errors.

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How worknow compares to global EOR platforms

A side-by-side comparison highlighting differences in local expertise, legal accountability, and support delivery in Germany.
Designed for companies that require reliable compliance and clear ownership.

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Ready to get started? Here’s how it works.

Step 1: Tell us who you want to hire

You send us a short message outlining your hiring plan in Germany. We need to know who you want to hire, for which role, the intended start date and the planned salary.

Based on this information, we quickly assess feasibility and confirm that the setup works under German labor law.

Step 2: Receive a clear offer

You receive a transparent offer with fixed pricing. The standard monthly fee is EUR 599 per employee, plus one-time onboarding and offboarding fees.

There are no hidden costs and no percentage-based pricing. Once you confirm, we take over the setup.

Step 3: We handle contracts and compliance

worknow prepares all required contracts and statutory documents under German law.

You don’t need to deal with German legal requirements, authorities or compliance details — we manage this end to end and guide you personally through the process.

Step 4: Smooth onboarding of your employee

We coordinate the onboarding, collect all required employee data, run the mandatory safety instruction and set up payroll.
Everything is prepared so the employee can start on time and fully compliant.

Step 5: Your employee starts working

Your employee starts work as planned — legally employed in Germany through worknow.
We run payroll, handle taxes and social security and act as the local HR contact, while you stay in control of day-to-day work and performance.

Ongoing Support

Throughout the entire employment, you have a dedicated contact at worknow. We support you and your employee with payroll questions, changes and compliance, so you can focus on growing your business.

FAQs

What does Employer of Record mean at worknow?

An Employer of Record (EOR) enables companies to employ staff in another country in a fully compliant manner without setting up a local legal entity. worknow operates exclusively in Germany and acts as the legal employer for employees hired in Germany on behalf of foreign companies.

Where employees are hired and perform their work in Germany, Employer of Record arrangements fall under Germany’s labour leasing framework. According to the prevailing legal view, EOR models with a German nexus qualify as labour leasing (Arbeitnehmerüberlassung). For this reason, worknow operates its EOR services accordingly and holds the required AUG licence issued by the German Federal Employment Agency.

Based in Berlin, with in-depth knowledge of German labor, tax and social security law and the required legal authorizations, worknow ensures that employment in Germany is fully compliant. Our approach focuses on personal support, clear processes and direct accessibility.

Which services does worknow provide as an Employer of Record?

worknow assumes all legal and administrative employer responsibilities in Germany. This includes the preparation of compliant German employment contracts, full payroll processing, payment of taxes and social security contributions and all required filings with authorities and social security institutions.

Day-to-day management and operational collaboration with the employee remain fully with the client company.

How does payroll work at worknow?

As Employer of Record, worknow bears full responsibility for accurate and timely payroll in Germany. Salaries are paid on time, all statutory deductions are correctly processed and all reporting obligations are fulfilled.

This allows foreign companies to employ staff in Germany without having to deal with the complexity of German payroll, tax and social security regulations themselves.

What are the costs of using worknow?

worknow’s standard monthly EOR fee is EUR 599 per employee. This fee covers ongoing Employer-of-Record services, including payroll, compliance and administrative support.

In addition, a small one-time onboarding fee and a one-time offboarding fee apply. All costs are communicated transparently before the start of the engagement. worknow does not charge hidden fees or percentage-based fees on employee salaries.

Can I hire employees in Germany without an Employer of Record?

worknow is not a global platform provider, but a Germany-focused Employer of Record. With a clear regional focus, a Berlin headquarters and personal support, worknow offers a significantly higher level of legal certainty than broadly positioned international providers.

Instead of anonymous workflows, you work with dedicated contacts who understand German labor law and take your specific situation into account.

How does worknow differ from international EOR providers?

Instead of anonymous workflows, you work with dedicated contacts who understand German labor law and take your specific situation into account.

AUG Licence

As part of the licensing process, the Federal Employment Agency conducts regular and comprehensive reviews of a provider’s reliability, financial stability, and full compliance with wage payments and social security contributions. An indefinite AUG licence is only granted after several years of audits without any objections, making it a strong indicator of long-term compliance and operational stability.

Is there a minimum or maximum duration for employment with worknow?

There is no minimum duration for employment with worknow.

Under German law, employment within an Employer-of-Record / employee leasing setup is subject to a maximum duration of 18 months. worknow ensures that this statutory limit is observed and supports you in structuring the engagement accordingly.

If longer-term employment in Germany is planned, worknow is happy to advise on alternative, compliant setups.

Can worknow provide a company car or fuel card?

No. As an Employer of Record, worknow does not provide company cars or fuel cards.

Due to the limited duration of EOR arrangements and the financial, legal and tax risks associated with vehicle leasing, this is not feasible. As an alternative, clients may arrange a vehicle directly, for example through a long-term rental. Where applicable, worknow can reflect private-use taxation or mileage reimbursement in a compliant way via payroll.

Bonus Payments & Incentives

Can we include bonus agreements in the employment contract?

To maintain maximum flexibility and a clear separation of legal liability, worknow GmbH does not fix any performance-related bonus entitlements in the primary employment contract.

Our role is to provide a compliant platform for your international or local hiring needs.

Regarding incentives, we operate under the following principles:

Discretionary Nature: Any rewards or incentives are treated as purely discretionary payments initiated by the client. These are not part of the core contractual salary obligations of worknow GmbH.
The Pass-Through Model: We act solely as a technical processing agent. A payout can only be facilitated if the client explicitly requests it and provides the necessary funds in advance.
Budgeting for Ancillary Costs: Please be aware that the total cost for a bonus includes the gross amount plus approximately 25% in employer-side contributions (social security, etc.).
Execution only upon Funding: worknow GmbH will process the payment through the next available payroll once the full amount (including all employer costs) has been secured.

The Benefit: This structure ensures that you retain full control over your budget on a month-to-month basis without creating long-term legal precedents or fixed contractual liabilities for either party.

How does the collaboration with worknow start?

Getting started with worknow is simple.

You send us a short email outlining your hiring plans in Germany, including who you want to hire, for which role, the intended start date, the planned salary and the expected duration of employment.

Based on this information, worknow reviews feasibility and, in most cases, completes the entire setup within 3–5 business days. Where required, we are also able to progress steps over weekends to meet tight timelines. Throughout the process, you are supported by a dedicated contact to ensure a compliant, transparent and straightforward setup.